Part 8/13:
- Interest Rates & Yield Curves: The relationship between rising energy prices and interest rates is complex. Traditionally, rising crude oil has triggered rate hikes, but in recent crises (notably 1991, 2008, and the dot-com bubble), surging energy costs led to falling rates, signaling tightening financial conditions. Currently, the risk is that rates could decline again, signaling recessionary pressures.
Market Sentiment and Technical Signals
The market’s outlook is increasingly bearish. The S&P 500, NASDAQ, and other indices are approaching their 200-day moving averages—an important technical support level. Multiple signals point toward potential breakdowns below these levels, which could catalyze further declines.